UPDATE: Clariant Leaves Guidance Unchanged After Akzo Warning

Clariant AG (CLN.VX) Tuesday said its full-year outlook still stands, despite a profit warning from Dutch rival Akzo Nobel NV (AKZA.AE).

"Clariant's forecast [for] 2011 remains unchanged," a spokesman for the Basel-based chemicals manufacturer said in an emailed statement.

Coatings firm Akzo Monday cut its forecast for the year, citing lackluster business and further increases in raw material prices. But several of Akzo's rivals have been more successful in passing on their cost of higher raw materials to their customers through price hikes.

Firms such as DuPont Co. (DD), Valspar Corp. (VAL) and PPG Industries Inc. (PPG) were able to pass on the costs, while U.S.-based Sherwin Williams Co. (SHW) and Germany's BASF SE (BAS.XE) haven't yet been successful in doing so, according to research from Unicredit.

Coatings companies selling mostly to consumers face higher problems than those selling mostly to industry, Unicredit analyst Markus Mayer said.

Mayer said Akzo Nobel's profit warning, which took analysts aback because of confident comments about pricing power as recently as April, looked to be a problem specific to Akzo, and not to the broader chemicals sector.

At 1127 GMT, Clariant traded CHF0.12 lower, or down 0.8%, at CHF15.48, lagging a 0.5% rise in the Stoxx 600 chemicals index.

-By Katharina Bart, Dow Jones Newswires; +41 43 443 8043; katharina.bart@dowjones.com

Clariant (PK) (USOTC:CLZNY)
Historical Stock Chart
From Jun 2024 to Jul 2024